The Federal Deposit Insurance Corp.'s legal opinion that thrift deposits acquired by banks cannot be used to pay off Financing Corp. bonds warrants another look. The Savings Association Insurance Fund is responsible for paying $780 million each year in interest on the so-called Fico bonds. The FDIC's decision to block some SAIF revenue from the bond payments makes a default more likely. The bank-owned thrift deposits are called Oakar and Sasser deposits after the two lawmakers who sponsored amendments making the acquisitions possible. What follows is the FDIC's official position, issued earlier in the year.
The FDIC legal division has received inquiries concerning the opinion it expressed in a letter sent to the General Accounting Office on April 23, 1992.